AI Drafter 
TaxTMI 
TaxTMI 
2018 (6) TMI 1286
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....ofit and loss accounts certified to have been prepared on estimate basis to avail bank loan and having no relation with the actual?" Implicit in the question is that it is not the Income Tax Appellate Tribunal's business if the assessee has committed fraud on the bank and has obtained credit facilities by misrepresenting its financial position. The facts need now to be noticed. This wily assessee was interested in obtaining credit facilities from a bank and had a balance-sheet prepared by a firm of chartered accountants by the name of Roy Ghosh and Associates. The balance-sheet was necessary for the purpose of the application to the bank to obtain credit facilities. The balance-sheet indicated figures which may not have been commensur....
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....ed 15.10.2005 no addition can be made as assessee was holding fixed assets of Rs. 5,02,423/- only. The difference of Rs. 20,09,788/- was only due to the over valuation of the fixed assets for availing of the bank loan. We do not agree with the contentions of the ld. A. R. in this regard we have pursued both the audited balance sheets and profit and loss account for the year ended 31st March, 2005 along with audit report in form no.3CB. The audited balance sheet and profit and loss account no where state that these are on the basis of estimate. The audited profit and loss account and balance sheet dated 18.7.2005 which is signed by as partner of Roy Gosh & Associates does not give any indication that they are only the estimated figures. A Ch....
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....s from his examination of his books. The tax audit u/s 44AB is carried out as per the provision of Income Tax Act. The proforma of the audit report cannot be changed just to give a false impression to the assessing officer or to the public at large. This audit is not conducted under the Banking Regulation Act so that the plea of the Ld. A.R can be accepted. The purpose of the tax audit is to ensure that the balance sheet and profit and loss account gives the correct information as per the books of accounts maintained by the assessee. A party or an auditor cannot be permitted to get away from the consequence of the information which he has given by way of a certificate subsequently when he has been caught merely by stating that the informati....
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....the case of a person who carries on any business or profession other than a person covered by Rule 6G(1)(a) of the said Rules. The assessee is quick to point out that under Rule 6G(2) of the said Rules the particulars which are required to be furnished under Section 44AB of the Income Tax Act, 1961 are to be in Form No. 3CD. The assessee says that the certificate of July 18, 2005 of Roy Ghosh and Associates was not in Form No.3CD and, as such, the Appellate Tribunal fell into error in making observations as to the veracity of the particulars under Section 44AB as contained in the quoted passage. The substance of the appellant's submission is that to suit a person's purposes before one authority or the other, different pictures as to t....
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....h 31, 2005 in the appended balance-sheet and a true and fair view of the profit of the assessee for the year ended March 31, 2005 in the appended profit and loss accounts. The balance-sheet and the profit and loss accounts were prepared by the assessee and the certificate of the chartered accountant appended thereto with the intention of influencing the bank regarding the financial position of the assessee. It is submitted on behalf of the assessee that it is usual practice for a balance-sheet and profit and loss accounts to be prepared on the basis of estimates for the presentation thereof to a bank at a time prior to when the assessee is statutorily required to complete the assessee's annual accounts. It is the further submission on be....
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....ssessee as in the balance-sheet of July 18, 2005, the assessee could no longer resile from such position. It was then open to the Assessing Officer and the income tax authorities to pin the assessee down on the basis of the assessee's representation contained in the earlier balance-sheet and the reasoning indicated in the quoted paragraph by the Appellate Tribunal does not call for any interference. Indeed, the Appellate Tribunal may only be faulted for not reporting Roy Ghosh and Associates to the Institute of Chartered Accountants for having apparently abetted in the commission of a colossal act of misrepresentation which the appellant assessee undertook before his bankers for the purpose of obtaining credit facilities by indicating a fin....